World Economy

The world economy can have a big impact on the U.S.—and vice-versa. Learn how the global economy works and how events in distant countries may affect you and your finances.

The World Economy at a Glance

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China's Economy and Its Effect on the U.S. Economy
Frequently Asked Questions
  • How much is the world economy worth?

    There are over 7 billion people in the world across more than 200 countries, territories, and regional associations. One way to measure the world economy is to look at the gross domestic product (GDP). The World Bank measures GDP for the world as a whole. As of 2021, the world’s GDP was $96.1 trillion (in current U.S. dollars).

  • What is the largest market in the world economy?

    When measuring world economies by gross domestic product (GDP) in current, unadjusted prices, the U.S. is the largest market in the world economy. However, if you considered purchasing power parity (PPP), China would be seen as the world’s largest economy.

  • How does the world economy work?

    The world economy works through a series of economic transactions between countries. This includes international trade, currency exchange, international investing, immigration, and more. There are several agencies and organizations that help to run the world economy, including the International Monetary Fund (IMF), the World Bank, the United Nations, NATO, and more.

  • How much does the U.S. contribute to the world economy?

    The U.S. economy contributes trillions of dollars to the world’s gross domestic product (GDP). In 2021, the U.S. contributed more than $22 trillion to the world’s GDP. The U.S. is a leader in international trade and investment, which has a direct impact on the global economy. If the U.S. sees economic growth, the world economy will too.

  • What economic indicators are used to measure the global economy?

     The global economy can be measured by looking at gross domestic product (GDP), consumer spending, consumption, international trade and investment, money supply, national budgets and debt, and more. These economic indicators are looked at on the individual level for each country, territory, and region, and together as a whole.

Key Terms

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